Science Based Targets
Corporate Strategy for Climate Action
Last updated 18 Nov 2024
Science Based Targets presents a comprehensive framework for companies committed to reducing their greenhouse gas (GHG) emissions. This initiative aligns corporate action with the objectives of the Paris Agreement, providing a structured path to limit global warming.
Detailed Overview of Science Based Targets:
Emissions Scopes:
- Scope 1: Direct emissions from owned or controlled sources.
- Scope 2: Indirect emissions from the generation of purchased energy.
- Scope 3: All other indirect emissions, including those from the entire value chain e.g purchased freight.
Target Setting Process:
- Targets are established with a scientific basis, aiming to limit global warming to 1.5°C above pre-industrial levels.
- They should be specific, measurable, achievable, relevant, and time-bound, typically covering a period of 5 to 15 years.
- Strategies encompass renewable energy adoption, energy efficiency improvements, and reducing emissions across the value chain.
Reporting and Verification:
- Mandatory regular reporting of emissions and progress towards the targets, fostering transparency and accountability.
- Third-party verification is required to ensure data integrity and credibility of reported progress.
Specific Data Requirements for SBTs:
1. Comprehensive Emissions Data:
- In-depth collection and analysis of GHG emissions data across all three scopes.
- Historical emissions data are essential for establishing a baseline and tracking progress.
2. In-depth Business Activity Data:
- Detailed operational data including production volumes, energy use, and other relevant operational metrics.
- Information on organizational activities that contribute to GHG emissions.
3. Thorough Supply Chain Information:
- Data on emissions from upstream and downstream activities, including procurement, product use, and end-of-life stages.
Calculating and Reporting Emissions:
1. Total GHG Emissions Calculation:
- Calculation of total GHG emissions, considering all scopes, with robust methodologies to ensure accuracy.
This can be achived by following one of the many good frameworks for calculating emissions
As an example, SBT reports frequently mention organizations/frameworks such as GLEC
2. Emissions Intensity Assessment:
- Determination of emissions intensity for various business activities, providing a clear picture of emissions relative to output or activity.
3. Consistent Tracking of Progress:
- Continuous monitoring and evaluation of progress towards emissions reduction targets.
Detailed SBT Reporting Requirements:
| Reporting Requirements | Organizational Level | Additional Notes |
|---|---|---|
| Scope of Emissions Reporting | All three scopes (1, 2, 3) must be reported | Detailed breakdown is essential for transparency |
| Target Setting | Specific targets aligned with the 1.5°C goal | Targets should be ambitious and feasible |
| Total GHG Emissions Reporting | Mandatory for all scopes | Comprehensive reporting including all sources using e.g. GLEC |
| GHG Emission Intensity Reporting | Required, with clear methodologies | Helps in understanding emissions efficiency |
| Progress Reporting | Regular updates on target achievement | Essential for tracking long-term goals |
| Third-party Verification | Independent validation of data and progress | Enhances credibility and accountability |
| Data Quality and Transparency | High standards for data quality and openness | Critical for accurate and reliable reporting |
| Reporting Frequency | At least annually | Ensures up-to-date information and continuous focus |
| Alignment with Global Standards | Adherence to recognized protocols and frameworks | Ensures consistency and comparability |
Integration with Corporate Strategies:
- SBTs should be integrated into overall corporate strategy and operations, ensuring that climate action is a core business objective.
- This requires a holistic approach, involving all departments and levels of the organization, from the executive board to operational teams.